Netscape Gets OK to Export Security Software

Netscape Communications Corp. on Monday said that it received U.S. Commerce Department approval to export some of its security software.

The Mountain View-based company also said it was negotiating with the government for approval to export even stronger security software, which could be used by financial institutions.

The U.S. government, fearing criminals and terrorists could do business unimpeded on the Internet, won’t allow software companies to export encryption software used to scramble information sent across the Internet unless it can get access to the keys that decode the messages.

Netscape said the approval will let it implement within two years so-called key-recovery features for such applications as e-mail. Until now, strong encryption has been available only in products for U.S. and Canadian markets.

The rest of Netscape’s plan doesn’t provide a key-recovery mechanism but, instead, allows the identity of a person accessing information on a network to be traced. Under Netscape’s plan, the identities could be traced using a digital certificate that would be needed to hold an encrypted session online, Netscape said.

The proposal would also let Netscape, the largest maker of software for browsing the Internet, export already-existing software without having to alter it or create a key-recovery plan.

Companies including Hewlett-Packard Co. and Digital Equipment Corp. also have applied or plan to apply for export approval, to better be able to compete with international rivals that offer stronger encryption products.

Netscape shares gained 19 cents to close at $25.50 in Nasdaq Stock Market trading.